George R. Roberts, a pioneering figure in the world of private equity and co-founder of the global investment firm KKR, has shared a wealth of knowledge and experience over his extensive career. His insights on investing, leadership, philanthropy, and building successful enterprises offer valuable lessons for professionals across various fields.

On Investing Philosophy

  1. On the keys to being a good investor: "I think to be a good investor, you have to have enough imagination to realize… what does the future look [like]?… That's number one. Number two: I think you have to develop a sense of people." [1]
  2. The importance of people in investments: "It's individuals that make the difference in a good investment or a bad one, at least in my experience, and getting that right and being able to relate to people or make some judgments on people are far more important than all the financial analysis that young people do today." [1]
  3. Skating to where the puck is going: To be a successful investor, "you have to have enough imagination to realize where the puck might be going, not to where it is or where it's been." [2]
  4. The core of KKR's initial strategy: The idea was simple: "you make an investment in a company, and you let management own part of that business where they didn't own it before. And all of a sudden, the business did better." [3]
  5. On the evolution of private equity: "Today you need far more skills than what we had in 1976. You need to be able to not only do the analysis right, but you really need to be able to figure a way, before you make an investment, how are you going to create value." [3]
  6. The folly of over-reliance on what you think you know: "It's not what you don't know that gets you in trouble. It's what you know for sure that just ain't so." [2] (Quoting Mark Twain in the context of the RJR Nabisco deal)
  7. On long-term value creation: George Roberts emphasizes long-term value creation and believes in focusing on building sustainable companies through hands-on management and operational improvements, rather than just financial engineering. [4]
  8. The business is about making companies better: "Our business is really making investments in companies and making them better." [5]
  9. If you own it, you take better care of it: "If you own a house you take better care of it than when you rent it. It’s not real complicated." [5]
  10. Focus on what you can control to reduce stress: "I've always found that the way to reduce stress in your life is to focus on things you can control." [6]

On Leadership and Management

  1. The three pillars of good leadership: "You have to have vision, moral courage and you have to have the people who you want to follow you believe that you care more about their success than you do your own. If you get those three things right, then you're going to do well." [4]
  2. The essence of a great organization: Referencing Peter Drucker, Roberts said the best organizations are those that offer "a great environment that allows people to do the best work they can." [4]
  3. Leaders must walk the talk: "You have to have a vision and you have to be prepared to walk the talk: don't ask others to do something you wouldn't do or haven't done yourself." [4]
  4. The importance of attracting and retaining talent: "You have to attract and keep the best people — because you can't do it on your own." [4]
  5. Good management vs. good leadership: "I think it's both good management and good leadership. It's probably more the leadership part of it than the management side of it." [3]
  6. On succession planning: "Part of your job if you're going to be a leader in an organization is to make sure that you have a good succession plan. And my hopes are that the people that take over after Henry and I aren't there do a better job than we've done." [5]
  7. Accountability is key: "You have to stay after it every day and you have to follow up. You have to hold your people accountable for doing what they say." [5]
  8. The importance of speaking up: When evaluating young professionals, he looks for those who "speak up... a lot of people are always afraid to be wrong." [2]
  9. Don't be afraid to be wrong: "I'm wrong more times during the day than I'm right. But at least express the views... making sure that you show up at every meeting you come to with an idea. And don't be afraid to be wrong." [2]
  10. Creating an environment of trust: To get the best out of people, provide feedback and create an environment where people communicate better by taking politics out of it. [5]

On Building Successful Partnerships

  1. The foundation of successful partnerships: "The essence of life is having personal relationships. They have to be built on total respect and total trust." [4]
  2. The importance of shared values: "For any partnership to succeed, you have to have certain shared values... making sure that people are aligned with their interests, their values are shared, and they're people that you can trust." [7]
  3. People do business with people they like and trust: "People have to like you to give you a chance, and you have to do a good job to earn the trust. That takes time." [7]
  4. The core principles of KKR's founding partnership: "Trust, integrity, sharing a common vision, and really wanting anybody that you partnered with to succeed." [7]
  5. Finding the ideal partner: "You need to make sure that one, you can trust them, and two, that you share the same value system... and that's not about making money, I mean the same value systems about what's important to you in life." [5]

On Philanthropy and Social Impact

  1. The motivation behind REDF: "We wanted to start something that if we didn't do it, it wouldn't get done. I guess the term today is now in business schools used as venture philanthropy." [6]
  2. The power of a job: "If people didn't have jobs, they didn't have hope. And if you don't have hope, you know, what do you have?" [8]
  3. Work as the best anti-poverty strategy: Roberts' philanthropic work is guided by the principle that "work (rather than social work) is the best anti-poverty strategy." [9]
  4. Applying business principles to philanthropy: REDF was created to support groups with "equity-like grants and business assistance" to help them start businesses that employ people facing barriers to work. [9]
  5. On venture philanthropy: "I founded REDF to fund not-for-profit endeavors that would provide training and entry-level jobs for the chronically unemployed." [4]
  6. The social return on investment: A study on the social enterprise model showed a significant social return on investment: "$2.23 for every $1.00 invested in social enterprise." [10]
  7. A different kind of giving: "So much of giving... is wealthy giving to the wealthy... We wanted to do something different and we wanted to make a difference in people's lives." [8]
  8. The ripple effect of employment: "If there's a true north in someone's life, it's the ability to get a job. I think without the job you don't have any hope. So how is someone without a job going to go create a family, be a good parent, take care of their kids, make sure they get the education that they need to get?" [8]
  9. A focus on second chances: "Across our country, social enterprise partnerships between the public and private sectors are providing millions of Americans - young and old - a second chance." [11]
  10. The opportunity gap: "What we lack in our country right now... is an opportunity gap... There are people, minorities, that are very, very capable people, but they can't get their foot in the door." [2]

On ESG and Corporate Responsibility

  1. ESG is good business: Integrating environmental, social, and governance (ESG) factors into private equity is both "good business and the right thing to do." [12]
  2. The importance of diversity: "I think diversity's a good thing because it brings [together] other people with other backgrounds to think about problems and issues you have… the reason to do it is one, it's the right thing, and secondly, you get the best results from diverse organizations." [1]
  3. Long-term value over short-term cost in ESG: Private equity needs to "look at not just what the initial cost will be" when it comes to ESG integration. [12]
  4. ESG as a bottom-line business issue: KKR's Green Portfolio Program, which focused on environmental metrics, became a "bottom-line business issue" due to the cost savings it generated. [12]
  5. The importance of a happy workforce: "If you have a workforce that really isn't happy going to work every day, how much productivity have you lost?"
  6. Doing the right thing is good for business: "Being a responsible person is not hard, you know, just doing the right things. And it's good for business, and it's really good for the employees in your firm." [6]
  7. Purpose beyond money: "Everybody wants to feel that they have a purpose in life other than money and people want to work for firms that do the right things." [6]
  8. Energy as a huge opportunity: "We've been investing in energy since the mid-eighties… We've been interested in that for a long period of time, and now seems like a very good time to be investors in that." [13]
  9. Supporting green initiatives: KKR's "Green Portfolio Program" encourages "better, greener, more sustainable businesses." [13]

On Career and Personal Growth

  1. Embrace change and an entrepreneurial spirit: "The world is going to continue to globalize... there's going to be more competition... But there are opportunities out there for you [and] you all have the benefit of graduating from one of the best schools in the world. You are ready to compete with the rest, but you must be willing to embrace change and have an entrepreneurial spirit."
  2. The importance of doing simple jobs right: "If you can't do the simple jobs right, you'll never be trusted with the harder ones."
  3. Don't rest on your laurels: Quoting Will Rogers, "Even if you're on the right track, and you're just sitting there, you're going to get run over."
  4. Advice to young professionals: "Don't be afraid to... pick up the phone sometime and call somebody... I get a lot of calls like that, I always take them... because at some point in my career, people have taken my phone call where I've asked for a favor." [3]
  5. Don't be afraid to change jobs: "If you need to change jobs in two or three years, you know you haven't committed a sin, go change jobs." [5]
  6. Making a life, not just a living: Quoting Winston Churchill, "We make a living by what we get, but we make a life by what we give."

Learn more:

  1. George Roberts, Co-Chairman and Co-CEO of KKR - Goldman Sachs
  2. George Roberts, Co-Chairman and Co-CEO of KKR - YouTube
  3. 2015-16 Robertson Lecture Series on Global Leadership with George Roberts - YouTube
  4. Private Equity Pioneer George Roberts Shares Tips on How to Make an Impact
  5. George Roberts: Don't Miss Opportunities - YouTube
  6. George Roberts, Co-Chairman and Co-CEO of KKR - YouTube
  7. George R Roberts - KKR Company Vision - YouTube
  8. George Roberts & Carla Javits On Philanthropy, Private Equity, Economy - ValueWalk
  9. Roberts Enterprise Development Fund - Philanthropy Roundtable
  10. History - REDF
  11. QUOTES BY GEORGE R. ROBERTS
  12. KKR private equity titan Roberts says ESG is "good business and right thing to do"
  13. George Roberts - Environmental Watch